According to WalletHub’s Credit Landscape Report, the average credit card interest rate is 17.98% for new offers and 14.58% for existing accounts. I don’t know about you, but that is an interest rate I never want to be charged. Before I get into the 3 simple steps to take so that you never pay interest on a credit card ever again, let’s rewind a little.

Credit card interest rates tell you how much you will be charged if a carry balance from month to month. Credit card interest rates are typically displayed as an annualized percentage of your balance, known as the Annual Percentage Rate (APR).

Now that you have some background information, let’s move on to the 3 simple steps, which are as followed:

1. Only Make Purchase You Can Afford to Pay off Within 1 Month

2. Pay Your Full Statement Balance Every Month

3. Use a 0% Introductory APR Card If the First 2 Steps Do Not Work

1. Only Make Purchase You Can Afford to Pay off Within 1 Month

You do not want to fall into the dangers of credit card debt and absurdly high interest rates, so only make purchases that you can afford to pay off within 1 month of making the purchase. That means if you are buying a new phone, laptop, or any expensive product or service, you should be able to pay off that purchase within 1 month of making it. Credit cards allow you to leverage your money, so leverage wisely.

2. Pay Your Full Statement Balance Every Month

I have an entire article for this specifically. You should always pay off your full statement balance every month to avoid being faced with absurdly high interest rates. Also, in paying off your full statement balance every month, you are showcasing to yourself and on your credit report that you are a healthy user of credit.

In being a healthy user of credit, you open up more opportunities for yourself to the different ways you can leverage your money, such as a low interest loan to start that business you have been planning. Maintaining good credit is important, so being responsible with credit is a no-brainer.

3. Use a 0% Introductory APR Card If the First 2 Steps Do Not Work

If the first 2 steps do not work for you, you should look into applying for a 0% introductory APR card. With a 0% Introductory APR card, you will typically have a 12–18 month period when you get the card of not being charged any interest. In having 12–18 months of not being charged interest, you are giving yourself a big enough buffer to recover from the debt you incurred.

It is important to note that you will still likely be required to make minimum payments, so make sure you have done your due diligence and research to determine the level of risk you will be willing to take.

Absurdly high interest rates are avoidable. I have been able to avoid them, and I know that you can too. Credit cards are meant to benefit us. In understanding how you can use your credit cards to put yourself in a position to qualify for almost any low interest rate loan product, you will truly understand the power of credit. At the end of the day, the goal is to become a master of your finances.